Ethereum exchange supply falls below 4.9% for the first time
Bitcoin exchange supply drops to 7.1%, lowest since 2018
Indicates strong holding sentiment among crypto investors
Ethereum and Bitcoin, the two largest cryptocurrencies by market cap, have hit historic lows in exchange-held supply. According to recent data, Ethereum’s exchange supply has fallen below 4.9%—a first in its history. Meanwhile, Bitcoin’s supply on exchanges is now just 7.1%, a level not seen since November 2018.
This drop in exchange supply is a significant indicator of market sentiment. When crypto assets are moved off exchanges, it typically suggests that investors are not looking to sell anytime soon. Instead, they’re likely holding onto their coins for the long term, a trend often linked with bullish expectations.
What This Means for the Market
The declining availability of Ethereum and Bitcoin on trading platforms can tighten supply in the short term. This reduction may contribute to price stability—or even upward pressure—as less supply is available to meet potential demand.
Ethereum’s historic dip in exchange reserves comes amid growing interest in staking and decentralized finance (DeFi). More ETH is being locked into smart contracts, which limits its liquid availability. On the Bitcoin side, long-term holders (or “HODLers”) continue to dominate the market, further decreasing the likelihood of mass selling.
UPDATE: Ethereum's supply on exchanges has dropped below 4.9% for the first time in history, while Bitcoin's exchange supply is down to 7.1% the lowest since November 2018. pic.twitter.com/4uvGixfgyF
— Cointelegraph (@Cointelegraph) May 20, 2025
Investor Confidence Continues to Grow
These trends highlight a shift in investor behavior. Rather than viewing crypto as a short-term speculative asset, more people see it as a long-term store of value. With institutional interest rising and ETF approvals gaining ground, the decreased exchange supply supports a maturing market narrative.
While short-term volatility remains a risk, the fundamentals suggest increasing trust in crypto’s long-term viability.
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